Gov. Jennifer Granholm has proposed an enormous increase in the cost of liquor by raising the state’s markup on the product to 75 percent. Even though the state government does not produce, store, distribute or sell liquor, it already collects more than $250 million each year in liquor taxes and markup fees.
Michiganians already pay almost four times more in liquor taxes than their neighbors in Indiana. Approximately 4.5 million bottles of spirit sales are lost each year as people cross the border to save money.
Bootlegging of liquor from other states by organized smuggling rings is costing Michigan tens of millions of dollars per year in lost tax revenues. Increasing Michigan’s liquor taxes just gives these criminals one more reason to cheat the state of Michigan and put our businesses, jobs and economy at further risk. The police obviously have a big enough problem on their hands already. State government should be finding ways to help combat this problem, not providing incentives for the criminals to make a larger profit.
This is a risky and unnecessary proposal that endangers the strength of several promising industries as well as the jobs they offer. There are so many jobs being lost in this troubled economy — why add the liquor, hospitality, tourism and retail industries to that list?
George Zrinyi
president, Michigan Liquor Vendors
Support student media!
Please consider donating to The State News and help fund the future of journalism.
Discussion
Share and discuss “Increasing alcohol prices will lose business, hurt economy” on social media.
